In today’s life without banking system the economic or business prosperity is almost impossible.Why we need banking system?Banks are institutions that accept deposits from customers and channel them back through loans. In the present, people have used banks for various financial transactions. There are various banks that offer various attractive programs
Why we need banking system?
Human life now cannot be separated from the bank. There are many benefits and conveniences that we get when we create a bank account. At least here are some reasons why we need a bank.
1. A bank is a safe place to store money
Banks are indeed one of the safest places to save money. The bank offers various savings products so that customers can save money safely depending on their individual needs. When saving money in a bank, customers can receive a passbook or cheq book that lists transactions and the total money in their account.
Compared to saving money in cash at home, saving money in a bank is safer. Saving money at home carries various risks, including theft, forgetting to put money, or damaged money. However, when saving money in the bank, customers can take the money back at any time according to the nominal value of their respective accounts.
2. Banks offer profit if we deposit a deposit
Besides being safe, saving at the bank can also provide benefits to customers. Each Islamic bank will provide profit to customers who have savings with a certain nominal and percentage. The nominal income from this profit is not really felt when the nominal savings are small, but this is better than getting no income at all.
The bank also offers other savings products with more attractive profit rates. Several banks offer deposit products that customers can use. This deposit product or account usually has a certain minimum nominal value and can only be taken at certain times. However, this product offers higher profit for customers. By having this deposit product, customers can also start investing their money.
3. Banks can lend money to their customers
Banks benefit by channelling money to their customers in the form of credit or loans. When there is need of money, customers can borrow a certain amount from the bank. Banks can lend money both for sudden daily needs and for capital to open a business.
On this day and age, many people need money to get their various needs. For example, to buy things such as houses and vehicles. Not everyone has enough monthly income to buy these items. At times like these, banks can offer easy solutions.
4. The Bank offers ease of transactions
Ease of transactions is one of the bank’s attractions for its customers. Customers can choose which bank they are comfortable with. Therefore, now banks are competing to provide the best service and make people comfortable to attract more customers.
Customers no longer have to come to the bank to deposit or withdraw money from their savings. Various types of ATMs have been scattered in various places so that customers feel more comfortable in making transactions and do not have to queue at bank offices.
Every business is trying to have presence online, and when we buy or sell something online then it means we are to utilize banking channel. The customers need bank and business owners also need it for smooth business transactions.